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Sole Purpose Test

SMSF Sole Purpose Test

SMSF Sole Purpose Test
So, you’re thinking of purchasing a property through your Self-Managed Super Fund. Well you need to consult a sole purpose test. What’s that? You’re wondering. Basically it means you need to run your fund for the sole purpose of providing super benefits for your members when they retire. A simple rule is – Anyone related to a Self-Managed Super Fund must not use its assets.

The sole purpose test applies to all investments including collectable items such as artwork, jewelry, and cars. So before making any investment decisions, ask yourself “What is the purpose of this investment?” If the purpose is solely to provide retirement benefits to members, great! But if it’s to immediately benefit members or anyone related to the fund, you should skip that investment.

Source: www.ato.gov.au

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.